Order in the Court: The Influence of Firm Status and Reputation on the Outcomes of Employment Discrimination Suits
Open accessAbstract
This article explores the mechanisms by which corporate prestige produces distorted legal outcomes. Drawing on social psychological theories of status, we suggest that prestige influences audience evaluations by shaping expectations, and that its effect will differ depending on whether a firm’s blameworthiness has been firmly established. We empirically analyze a unique database of more than 500 employment discrimination suits brought between 1998 and 2008. We find that prestige is associated with a decreased likelihood of being found liable (suggesting a halo effect in assessments of blameworthiness), but with more severe punishments among organizations that are found liable (suggesting a halo tax in administrations of punishment). Our analysis allows us to reconcile two ostensibly contradictory bodies of work on how organizational prestige affects audience evaluations by showing that prestige can be both a benefit and a liability, depending on whether an organization’s blameworthiness has been firmly established.
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High standards create expectations that, when violated, can lead to strong negative reactions.
“they also create expectations that, when violated, can lead to strong negative reactions”
From Strategic Silence: Withholding Certification Status as a Hypocrisy Avoidance Tactic (2018) · cites this paper as McDonnell and King, 2014
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Strategic Silence: Withholding Certification Status as a Hypocrisy Avoidance Tactic
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Self-citation
- Authors
- McDonnell, M.-H., & King, B.
- Affiliations
- University of Pennsylvania (US)
- Northwestern University (US)
- Corresponding author
- McDonnell, Mary-Hunter
- Venue
- SSRN Electronic Journal
- Publisher
- Elsevier BV
- Published
- 2014
- ISSN
- 1556-5068 (ISSN-L)
- OpenAlex
- W1562437319
- Cited by
- 5
- References
- 123
- Citations by year
- 2019: 2 · 2017: 1 · 2015: 2
- Type
- posted content
- Language
- en
- Open access
- green
- doi.org
- Locations
- SSRN Electronic Journal (acceptedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Law, Economics, and Judicial Systems
- Social Sciences › Sociology and Political Science › Names, Identity, and Discrimination Research
- Social Sciences › Law › Judicial and Constitutional Studies
- Keywords
- organizational prestige, corporate reputation, employment discrimination lawsuits, legal liability, culpability, halo effect, audience evaluation, status theory, corporate punishment
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
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